Despite tripling profits to £126m, John Lewis staff won’t get a bonus for the third straight year.

John Lewis workers have been left empty-handed once again, as the company announced that, despite tripling its annual profits to £126 million, there will be no staff bonus for the third consecutive year.

The staff-owned retailer, which includes John Lewis department stores and Waitrose supermarkets, saw group sales rise by 3% to £12.8 billion in the year ending 25 January 2025. However, executives say investment takes priority over staff rewards, with the company set to spend £600 million on store upgrades, new technology, and supply chain improvements.

Jason Tarry, the newly appointed chair, defended the decision, arguing that a 7.4% pay rise for workers was a bigger priority than a one-off bonus.

“I am determined to pay a bonus as soon as we possibly can, but that will depend on where we are at the time and the conditions we face,” he said.

This marks the fourth time in five years that the annual bonus has been scrapped, a trend that began after the company suffered massive losses during the pandemic.

While profits have surged, job cuts have continued. The retailer confirmed that it had 4,000 fewer employees last year, reducing its workforce to 69,000 after a similar 3,500 reduction the year before.

Finance director Andy Mounsey admitted that further job losses are likely as technology streamlines operations.

“It is inevitable that we will need fewer jobs… but redundancies are always the last resort.”

The company has already closed 16 department stores and at least 20 Waitrose locations as part of a wider turnaround plan aimed at cutting costs and boosting efficiency.

John Lewis department stores reported £4.8 billion in sales, but operating profits plunged from £689 million to £45 million due to the return of price-matching promotions and an increase in low-margin technology sales over fashion.

Waitrose, however, flourished—sales rose 4.4%, and profits jumped by £122 million to £227 million, thanks to lower prices and better stock availability.

John Lewis expects profits to keep rising and has set a £400 million profit target by 2028. Despite economic challenges, Tarry insists that both John Lewis and Waitrose have strong growth potential.

“We see significant opportunities ahead… Our focus is on making these brands truly special for customers.”

For workers, however, the uncertainty continues. With profits rising but bonuses still off the table, many staff members are wondering if their loyalty will ever be rewarded.